Need Tax Help? Here Are Answers to 11 Last-Minute Filing Questions
Procrastinated on your taxes? You're not alone: According to its latest filing statistics, the IRS has received just over 90 million of the 146 million individual income tax returns it expects to get before the deadline.
Regardless of what your excuse is, it's probably time to get moving, as the 2024 tax filing season is officially winding down. Luckily for you, Money has a bunch of well-researched tax stories with tips that'll make doing your taxes fast, easy and cheap.
Here are 11 common questions (and answers) about this year's tax filing season:
How do I file taxes?
There are tons of ways you can file your 2023 tax return, but we recommend starting with the free services.
If your adjusted gross income, or AGI, for 2023 is under $79,000, you qualify for free guided tax preparation through the IRS Free File program. This year, IRS Free File has eight name-brand partners, including TaxAct and 1040.com. Some of these companies put additional restrictions on who can use them, so check your eligibility before starting.
This year has also seen the IRS test Direct File, its own free tax tool. During the pilot phase, certain taxpayers in 12 states may qualify to file their federal taxes for free. In its current stage, IRS Direct File is targeted at folks with simple tax situations, like those who have W-2 wages under $200,000.
Depending on how complicated your taxes are, you may also be able to file for free through a third party like Cash App or H&R Block.
Keep in mind these are resources largely for federal taxes — if you live (and/or work) in one of the 41 states that tax wages, you're likely on the hook for state taxes, as well.
When are taxes due in 2024?
Most taxpayers must submit their federal tax returns by Monday (that's April 15). People in Maine and Massachusetts have until Wednesday (April 17) because of Patriot's Day and Emancipation Day. Your return is due, meaning submitted digitally or postmarked, by midnight local time.
Note, however, that these are the federal deadlines. The due date for your state tax return may be different. This year, deadlines for state individual income taxes go as late as May 15 (in Louisiana).
How do I file a tax extension?
If you think or know that you won't be able to turn in your taxes on time, consider requesting an extension from the IRS. To do this online, you can use IRS Free File regardless of your income level, make a payment on your tax bill or have a tax prep service help you file Form 4868. This automatic extension will give you an extra six months, making your 2023 taxes due on Oct. 15.
Remember that what you'll get from a tax extension is additional time to file your return, not pay any tax bill owed.
How much are federal taxes?
It depends on your individual financial situation and filing status. But one thing to note is that the IRS adjusts the tax brackets every year to incorporate inflation. For 2023, the lowest tax rate, which impacts single filers with incomes up to $11,000, is 10%. The highest tax rate, which impacts single taxpayers with incomes over $578,125, is 37%.
The standard deduction, or how much of your income you can shield from taxes, rose to $13,850 for 2023.
Why do I owe taxes this year?
If you're surprised to find you owe taxes this year, it may be because your life changed. Maybe your income increased, you moved into a higher tax bracket, your child turned 18 or you forgot to update your withholding.
You may also be still shaking off a post-pandemic hangover: COVID-19 came with a slew of special programs, tax policies and credits (like the stimulus checks) that padded taxpayers' pockets. But most of them have since expired.
Remember: You can decrease your taxable income until April 15 by making a contribution to a traditional individual retirement account, or IRA.
Whatever happened with the expanded child tax credit for 2024?
Not much. Although the House of Representatives passed a bill that included an expanded child tax credit in January, and Sen. Ron Wyden, D-Ore., repeatedly told reporters he hoped it'd become law by the time tax season started, that didn't happen. The IRS has encouraged people to file their taxes anyway, promising to apply the credit retroactively if approved.
Congress recently returned from a recess, and the Senate is now reportedly back to work hammering out legislation like the tax bill. But for now, there are no updates on a 2024 expanded CTC proposal.
What happens if you don't file taxes?
Not everyone must file a tax return; for instance, single people under age 65 who don't make more than $12,950 in gross income are exempt. But most American adults do — and will face consequences if they choose to dodge the IRS.
If you don't file taxes, you may miss out on your tax refund, have your wages garnished, face IRS penalties or land in legal trouble. You probably won't, however, go to prison (unless you're evading taxes, which is a whole other story).
Where's my tax refund?
So far in 2024, roughly 60 million taxpayers have received refunds. And according to the IRS, the average refund size is a bit bigger than it was at this time last year: As of March 29, the typical tax refund was $3,050.
The IRS strives to send out most tax refunds out within 21 days of receiving a return, though amended returns, paper forms and documents with errors tend to take longer. As always, the fastest way to get your tax refund is to file electronically and select direct deposit as your payment method.
If you've already submitted your tax return and are anxiously awaiting updates on your refund, you can use Where's My Refund? to track it. This IRS tool will ask for your Social Security or individual taxpayer ID number, filing status and refund amount before telling you where in the pipeline your refund is. Where's My Refund? refreshes once a day, usually overnight, so there's no need to check it more often.
How should I spend my tax refund?
However you want. In a February survey from the National Retail Federation, 48% of respondents who got refunds last year and expected them this year said they intended to put the money in savings. Another 34% said they'd use the cash to pay down debt, and 30% said they'd devote it to everyday expenses. Others were weighing spending their tax refunds on vacations, splurges, home improvements and major purchases.
If you're interested in investing your tax refund for a short-term payoff, you might want to look into a certificate of deposit (CD) or Treasury bill, both of which are giving higher-than-usual returns due to the economic environment. Those seeking medium- to long-term payouts may want to consider a brokerage account or Roth IRA.
Am I going to get audited?
Statistically, probably not. In fiscal year 2022, the IRS audited only 3.8 out of every 1,000 returns, according to the Transactional Records Access Clearinghouse. That's down from 2021, when it scrutinized 4.1 out of every 1,000 returns filed. FYI: Most audits these days happen by mail.
How do I contact the IRS?
The IRS website is the best place to start if you have a tax question. The IRS phone line also now has voice and chatbots that can help you with common tax issues.
But if you need to get in touch with a human at the IRS, try calling 1-800-829-1040 between 7 a.m. and 7 p.m. local time. The IRS has put a lot of its Inflation Reduction Act funding into improving customer service, so you shouldn't be on hold too long: Phone wait times have decreased from 27 minutes to about 3 minutes in the past few years. (The closer we get to Tax Day, the longer the wait times get, so time your call carefully.)
Make sure you're prepared to verify your identity by providing your Social Security number or Individual Taxpayer Identification Number, birthday, filing status, prior-year tax return info, current-year tax return info and any IRS correspondence you've recently gotten.
You can also locate and visit a Taxpayer Assistance Center in your area.
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